Portugal agrees to swap Cape Verde’s debt for environmental investment

LISBON (Reuters) – Portuguese Prime Minister Antonio Costa said on Monday that he had agreed to use Cape Verde’s debt to invest in an environment and climate fund set up by archipelago nations off the coast of West Africa.

Such “debt-to-nature” swap agreements are emerging in other countries as well, with global leaders questioning how and who will bear the costs of actions taken to mitigate the impacts of climate change. is part of an attempt to solve the dilemma facing

A former Portuguese colony, the country is already suffering from sea level rise and significant loss of biodiversity due to rising ocean acidity, giving the Portuguese state about €140 million ($152 million). ), owes banks and other entities more than €400 million.

According to Costa, €12 million of debt repayment to the country, originally scheduled by 2025, will be included in the fund, and eventually “the full amount of debt repayment” will end there, as Cape Verde battles the energy transition. will be able to invest in against climate change.

“This is a new seed that we will sow in our future cooperation. Climate change is a global challenge, and if all countries are not sustainable, no country is (environmentally) sustainable.” Costa said during a state visit to Cape Verde remarks televised by RTP television.

He did not specify whether the debt to the Portuguese company was part of the deal, but said the company would also be involved in areas ranging from “energy efficiency to renewable energy production” or green hydrogen storage. expressed hope for

Cape Verde Prime Minister Ulisses Correia e Silva said his country urgently needs to support such solutions and enable mechanisms and financing instruments to deal with natural emergencies. .

Debt deals for nature can help as so-called green and blue bonds can be issued to fund conservation activities on land, land and sea. environmental goals.

($1 = 0.9206 Euro)

Reported by Sergio Goncalves. Edited by Andrei Khalip and Grant McCool

Our standards: Thomson Reuters Trust Principles.

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